CZ Sentenced, Your Bitcoin in their Custody

[Abiky]

The former CEO of the popular central exchange Binance, C Z, has been sentenced to four months in prison. Since the sentence is only four months, there will be no change in the rules of the exchange and no negative impact on the exchange. Since CZ has already resigned as CEO, I don't think his prison sentence will have any negative impact on Binance Exchange.

It won't have any impact on Binance exchange. But BNB's market prices could be affected. At least in the short term. After all, investors/traders quickly react to mainstream news/events. I'm confident Binance will become bigger and stronger than ever after this fiasco.

CZ might not be CEO anymore, but he still has an influence over the crypto community. He's loved by many, unlike his counterpart (SBF). Who knows? Maybe we'll see CZ back in the crypto business. We can't predict the future, so lets hope for the best.

[OgNasty]

Looks like Jack Dorsey could be next on the jail list. Regulators apparently seem to be fighting over how to go after him given his enabling of censorship on behalf of the government. His company processed transactions for nations helping them get around economic sanctions. I guess we see now if Jack is an agent for the government or if he’ll be joining CZ is summer camp.

[Ojima-ojo]

Despite the mix-up of things from the ops, let me make a point for what I understand from this thread which is about CZ sentence and it effects on those using binance, the truth is that CZ already resigned from the COE seat of the exchange and the crime he is sentenced for is way back and not recently.


So the exchange have nothing to lose and those that use binance won't lose custody of they bitcoin holdings on the exchange because of his sentence.

[LDL]

I personally use Binance exchange and I give this exchange the most importance as my trading platform. However, after CZ was sentenced to 4 months in prison, I personally withdrew all funds for the time being. If the situation deteriorates ahead and at any time any untoward incident is likely to happen. We have faced such situations in the past especially in the month of November 2022 SAM BANKMAN had a popular exchange platform FTX scam where my account with all funds was frozen. I don't want to go through such bitter experience again that's why I have taken precautions and I have already withdrawn my funds.

[alani123]

I think it was implied that CZ will plead guilty to some charges so he can get a light sentence. Potentially even skip any jail, while Binance continues to survive. Albeit with greater compliance and stricter rules to follow this time around. I do think they tried to make an example out of him because for sure there are exchanges that have committed greater crimes than Binance just allowing users in via VPN. They just wanted to show to crypto executives that if they don't follow laws to the letter it might bite then later. Ofc this level of scrutiny hasn't ever even been applied to stock markets.

[Alphakilo]

CZ was smart enough to step down as the CEO of Binance so any case or issue against him will not bring down his empire. If he was still the active CEO, this news would have had a greater effect on the company.

But, my money in binance is safe right?

Even if he were still the ceo, nothing would have happened to binance. In my opinion, the prosecutors and maybe the judge and the courts are really trying to make an example of CZ because he failed to an effective anti-money laundering (AML) program at Binance.

Over here I know that the government is watching closely with what is happening in the US. They already said it that binance was supporting laundry money laundering.

[OgNasty]

As if he sees the writing on the wall, Jack Dorsey has announced that his company Block will now be purchasing Bitcoin every month moving forward. This move somewhat mirrors Microstrategy but the timing is a bit interesting to me as just earlier today there started being news reports that Jack Dorsey could be next in the state attack on crypto.

[Cosette]

...

Do you even realized that CZ is not the CEO of Binance anymore right? He step down to avoid being dragged down the exchange with his case which is effective since the exchange is operating normally despite the legal charges to CZ. His “4” is really effective on mind conditioning his blind follower to absorb the impact of his sentence since this will cause a major setback on exchange if CZ doesn’t condition his followers properly just like what happened to FTX.

Oh wait, looks like i missed out the news that he stepped down. Looks like i worried for nothing that related to CZ sentenced.

[PrivacyG]

Recently, I left Binance and withdrew all the funds. To be honest, for some reasons, they had frozen my account; later, they unfroze it but did not allow me to trade there. So I moved all the funds to my hardware wallet. Now there are no more funds in Binance, and I have almost secured all my funds with hardware wallets. Nowadays, I don't trust much in centralised exchange anymore. They can freeze all the funds for any reason. So you need to be very careful when using centralised exchanges, not just Binance. 

The feeling of safety you get when you know all your Cryptocurrencies are sitting in your own Custody is incomparable to any of the comfort a Centralized Exchange provides to their Customer.  To be honest.  I have no problem with the people who use Centralized Exchanges voluntarily accepting the risks it takes.  But I will never understand why people STORE their entire Cryptocurrency Wealth over there with out any worries.

[Cryptomultiplier]

I think CZ got away with a very modest sentence (if that's the total sentence, based on all charges), good for him. That makes it seem that the crime wasn't a big deal, which can also be good for the reputation of Binance.
But CZ being in prison doesn't mean that Binance will stop working (especially when we're talking about the global exchange) or that people wouldn't be able to use the funds they have there. I'm all for self-custody and I don't keep funds on exchanges, but I'm just pointing out that this particular news on CZ probably doesn't affect the money on the exchange.

Am sure that the exchange, Binance would get to function well despite the absence of CZ. Binance still remains one of the best exchanges to use and if changes like this, that is as a result of court conviction lingers much, we may have to jump ship and use an exchange that suits our portfolio well.
For even self custody, one would have to acknowledge the minimum amount that can be received or sent to the wallet of choice.

[Ale88]

But CZ being in prison doesn't mean that Binance will stop working (especially when we're talking about the global exchange) or that people wouldn't be able to use the funds they have there. I'm all for self-custody and I don't keep funds on exchanges, but I'm just pointing out that this particular news on CZ probably doesn't affect the money on the exchange.

CZ already officially stepped down as CEO months ago, and he did it exactly to prevent any possible bad outcome from the sentence he was going to get. Binance has already been operational without any problem for months since he renounced, and companies big like Binance don't rely on one person, they are like machines, they keep going. Even companies like Amazon, Microsoft, Apple... They could lose their CEO one day to the other but nothing would happen to the whole company.

[EarnOnVictor]

But what pains me is that the sentence is too little regardless of whether he pleads guilty or not, the 4 months will soon pass.

This will continue to embolden these rich guys to launder money, so what's the point?

I don't even see him committing any crime and what is happening is just an abuse of power by the US government. If you support the US government's assessment as being correct, you should prepare yourself better because sooner or later they will intervene more deeply in the cryptocurrency market and completely control it.

The interesting thing I see is that millions of users on X are trying their best to support CZ for his contributions to the crypto industry. Meanwhile, on the forum, there are some people who don't like him. It is true that it is difficult to please everyone.

You surprised me with your remark and assessment here, are you now advocating for an insane/bad world? What I think here is that you are finding excuses for bad activities to be happening unabated which is not fair at all. Binance and CZ which are directly involved in this never disagree with the US government, is it you and others who now know that the guy did nothing? This means that as rich as CZ and Binance are, they can't defend themselves if truly they are not guilty? C'mon!!!

What I've realised about some of you guys is that you want an entirely free system where there is no law/restriction, but that can only be advocated when there will not be crimes. Is that possible that there won't be crimes? No. This is why I would even love it if the government could regulate the cryptocurrency world better to avoid illicit flows that can aid trafficking, terrorism, drugs and many more. It is we who should be thankful that strong countries like the US have not banned cryptocurrency yet. supporting and cooperating with them is not too much to ask for. Not in a simple case like this.

[slaman29]

I don't even see him committing any crime and what is happening is just an abuse of power by the US government. If you support the US government's assessment as being correct, you should prepare yourself better because sooner or later they will intervene more deeply in the cryptocurrency market and completely control it.

I agree with @EarnOnVictor here, rare but true

I hate defending CEX anyway, they are all profit-making companies, and I use Binance myself despite everything but even long before CZ pled guilty, it was public knowledge that Binance Support Staff knowingly helped people to launder money.

This is not about crypto this is about blatant violations of law. Your control on crypto never got better or worse, you wanna trust SAFU?

Did you know if you message support in some channels, they even teach you how to bypass KYC? On their own platform?

One of many things Binance staff were trained to do to bring new customers on. Including fake IDs etc.

Why you think CZ pled guilty? Because he knew he's wrong.

[YUriy1991]

4 months is a joke. Normal guys go to prison for a much lighter offense and have been spending years on prisons that are barely liveable or acceptable for human conditions.

I think it's normal for those who have specificity and other reasons maybe during the trial CZ had ethics and cooperativeness so that the judge changed his mind not to impose a sentence longer.

Even if CZ goes to prison, a lot of his people will still run the company and people's funds will not go anywhere. And since the CEO is under the microscope for wrongdoings, the US government will certainly keep a microscopic eye on Binance just to ensure that no anomalies or irregularities will happen to the company's operations while the big boss is away.

At least all the processes are already underway and there has been a decision for CZ as millions of people are following the case as well. The public also hopes that all will be more honest and good, especially their countless users today.

[pinggoki]

He's not the CEO anymore, he stepped down months ago when the issues in Binance were piling up and that jail time for him isn't a lot anyway, I like to think that this is just a show of power for the authorities that even CZ is not untouchable by the law. Pretty sure that it will be a breeze or a bad vacation for CZ there, it will eventually pass and things will chill down for Binance after the dust settles.

4 months is a joke. Normal guys go to prison for a much lighter offense and have been spending years on prisons that are barely liveable or acceptable for human conditions. Even if CZ goes to prison, a lot of his people will still run the company and people's funds will not go anywhere. And since the CEO is under the microscope for wrongdoings, the US government will certainly keep a microscopic eye on Binance just to ensure that no anomalies or irregularities will happen to the company's operations while the big boss is away.

You forgot the part that CZ isn't any normal man, he's a billionaire and former CEO, he's got friends in high places so the influence that lead to the sentencing is definitely not something that a normal person would be able to afford, another thing about this is that those that are in prison for long for minor infractions are people that are waiting arraignment, basically they're all innocent people that are waiting trial but with such a bad justice system, it's taking forever. Definitely, that's what US does with companies after all, I wouldn't be surprised if FBI, NSA, Homeland Security, and CIA already has something to do with Binance already

[Lucius]

It won't have any impact on Binance exchange. But BNB's market prices could be affected. At least in the short term. After all, investors/traders quickly react to mainstream news/events. I'm confident Binance will become bigger and stronger than ever after this fiasco.
~snip~

Do you believe in it or do you just really want it?

In fact, it is completely irrelevant whether that CEX will exist for another 40 years or will fail in 4 months, just as it is irrelevant that CZ paid for his freedom with over $4 billion, while he earned at least x10 that much all those years when he worked in a way that he bypassed laws not only in the US but in every country where he provided services. Usually, after such a fiasco, things go downhill in any serious business where the client thinks logically, but fortunately for CZ, the people who need his services do not (mostly) behave logically.

[SquirrelJulietGarden]

Do you believe in it or do you just really want it? \

If dominance of Binance in CEX market place and cryptocurrency market becomes bigger, it will be worse. We need more decentralized, more choices to purchase, trade our bitcoins and cryptocurrencies. We don't want too much centralization in Binance or only some big exchanges.

Decentralized is future we aim at but it will be harder with more and stricter regulations from governments.

Usually, after such a fiasco, things go downhill in any serious business where the client thinks logically, but fortunately for CZ, the people who need his services do not (mostly) behave logically.

Reminders about risk of storing bitcoin on a website, a service are here for many years. People don't lack of warnings to be informed about this risk but they just ignore risk and store their coins on CEX.

Reminder: do not keep your money in online accounts

[AVE5]

Most threats in resulting to lost of bitcoin investors funds has mostly come from the centralized exchanges and the historical facts about how the exchange platform CEOs are being charged and pleading guilty onto the accuses is nomore becoming encouraging to have their assets saved in there.

Right in time if you're not I control of your funds then it's assumed not your funds untill it gets to you. This is just as your money in the bank which the government are at the topmost decision making of your you can get reach to your money all because you don't have a private key to keep it out of accessibility to the government.
So, this should really serve as warning for those who still have their funds in the CEX. Hence the DEX have you all the private security measures to have your funds safe and secured under your commands.

[GideonGono]

We need more Decentralized exchange for us to easily change our crypto to fiat or vice versa, most of us are aware that not our Keys not our Coins.
Bitcoin or crypto was created for anonymity but it seems that most of us are throwing it away because of the restrictions and cex dominance.

[Lucius]

If dominance of Binance in CEX market place and cryptocurrency market becomes bigger, it will be worse. We need more decentralized, more choices to purchase, trade our bitcoins and cryptocurrencies. We don't want too much centralization in Binance or only some big exchanges.
Decentralized is future we aim at but it will be harder with more and stricter regulations from governments.
~snip~

Do you know what's even worse? Besides the fact that CZ paid the fine and admitted his guilt, he may have done something else - and that something is complete control over all transactions on his CEX for those who are of course interested. CEXs are actually very desirable for the authorities, all they need is to gain control over them, and then they have control over most transactions.